Debts & Loans

Information about Consumer Debt Consolidation

Debt is ubiquitous. We, as consumers, have credit card debt, car loans, student loans, mortgages, home equity lines of credit, and unsecured loans. All across the world, everyday people are carrying an enormous amount of consumer debt consolidation.

This is on top of the unfathomable consumer debt consolidation carried by corporations and especially governments. The recent housing bubble helped fuel an unprecedented run-up in household debt. Fuelled by artificially low interest rates, consumers snapped up homes like there was no tomorrow. It got so bad that it didn’t matter if the borrower could even afford the loan. Anyone with a pulse could get a mortgage and thus the housing boom began.

Why Consumer Debt Consolidation?

As long as housing prices continued to rise, everyone was happy. People could borrow against the equity in their homes to buy anything they wanted. Normally, people would borrow against equity to make improvements on the house, thus raising its value. Not this time. People took out equity to buy cars, vacations, furniture, big-screen TVs and any other consumer item they could think of. The consumer went on a massive spending spree and retailers were jumping for joy.

Credit card companies were handing out credit cards like candy to anyone who wanted one. Home-owners would run up massive credit card debt, and then take out a home-equity loan to pay off the credit card debt or consumer debt consolidation. This may be a wise thing to do since the home-equity loan is tax-deductible. The problem was the idiot home-owner went right back out and mixed-out their credit cards. This cycle was repeated until one day the housing bubble popped.

Gone were the days of easy credit and easy financing. It was time to pay the piper. Those people with adjustable-rate mortgages found out that their rates were readjusting higher. This meant a much higher mortgage payment. Many couldn’t afford it and immediately went into foreclosure. Bankruptcies and foreclosures have soared over the past several years. Incomes have remained stagnant and actually have declined in real terms over the past thirty years. People have been using consumer debt consolidation as a substitute for income. Now they can no longer pay off the debt with their income.

This little guide is for those on the brink of disaster. It’s also for those who are doing okay now but can see the falls on the horizon. The methods we describe in this guide will get you out of consumer debt consolidation permanently. You must have patience and discipline and most importantly, you must not incur more debt while on this program! If you do incur more debt, you’ll never become debt-free and the methods in this book will be worthless.